Caltex Australia (CTX)

Macquarie has retained its “neutral" recommendation and a 12-month price target of $16 following
Caltex Australia
’s refining review and investor day.

The broker views the strategy update and strong outlook in the transport fuels segment provided by management as positives, and expects frequent updates over the company’s transition period.

“Indeed CTX will likely emerge from the restructure with a leading market share in an industry where there is attractive growth on offer and high barriers to entry. This will undoubtedly position CTX as a high growth/high yield company in the near future."

Macquarie is forecasting earnings per share growth of 30 per cent for the year to December 2012, and 15 per cent for 2013, to $1.27 and $1.46 respectively.